by John Darer® CLU ChFC MSSC CeFT® RSP CLTC Updated May 15, 2026
🌀The Yoo Hoo from Yahoo
Constructive receipt is an important term in the structured settlement lexicon, so pardon me while I adjust my “toque blanche” to address the following Yahoo query:
“In a structured settlement agreement to avoid constructive recipe (sic) the funding annuity is usually by whom?”
The question can best be answered by having a look at the following structured settlement flow chart
🥄Careful Consideration
To avoid constructive receipt, a key element to the transaction is that periodic payments MUST be part of the consideration stated in the settlement agreement, whether the settlement agreement is with the Defendant, its Insurer, or the trustee of a qualified settlement fund.
Avoid language that uses cash as consideration and states “the receipt and sufficiency of which is hereby acknowledged”.
Who Can Buy a Qualifed Funding Asset?
If unassigned, the qualified funding asset may be purchased by the Defendant; if assigned, it may be purchased by the qualified assignment company.
🚫💰The plaintiff MAY NOT purchase a structured settlement annuity themselves from their own funds.
At the end of the day, the Structured Settlement Kitchen is just another metaphor I use to make constructive receipt relatable to more people — attorneys who should know better, parents making decisions for injured kids, or spouses caring for someone whose world has been shaken. Because when life feels like a blender, a blender, a blender after a fender nemder, a simple, clear explanation can be the one steady thing in the room. 🧑🍳🌀
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